In these, unsynchronized transmission designs were replaced with synchronization or with continuously variable transmissions (CVTs). Either a synchronized manual transmission with enough available gear ratios (often achieved with dual ranges, high and low) or a CVT allow the engine speed to be matched to the desired final-drive speed, while keeping engine speed within the appropriate speed (as measured in rotations per minute or rpm) range for power generation (the working range) (whereas throttling back to achieve the desired final-drive speed is a trade-off that leaves the working range).

Dieselisation gained momentum starting in the 1960s, and modern farm tractors usually employ diesel engines, which range in power output from 18 to 575 horsepower (15 to 480 kW). Size and output are dependent on application, with smaller tractors used for lawn mowing, landscaping, orchard work, and truck farming, and larger tractors for vast fields of wheat, maize, soy, and other bulk crops.

In addition to towing an implement or supplying tractive power through the wheels, most tractors have a means to transfer power to another machine such as a baler, swather, or mower. Unless it functions solely by pulling it through or over the ground, a towed implement needs its own power source (such as a baler or combine with a separate engine) or else a means of transmitting power from the tractor to the mechanical operations of the equipment.